Jerome Powell ushers in a new era and pushes Wall Street upwards, but it is not enough for the European lists, which close the session in the red. Business Square is the worst, -1,44% and loses 20 points (19.847), weighed down by Diasorin -8,65% and Recordati -2,37%. Fight the banks. Mediobanca, rises by 0,62%, waiting for Leonardo Del Vecchio's moves after consent of the ECB to raise up to 20% of Piazzetta Cuccia. positive Bpm bank +0,32%. Forgive the big names Understanding -2,11% and Unicredit -1,86%. Slack off the energy with Enel -1,32% Tenaris -1,82% Eni -1,41% Saipem -1,77%. Stay on the shields telecom, +3,42%. Today is the news of a majority political summit which would have resulted in the unanimous green light for the path with CDP for the establishment of the company that will manage the infrastructures of the single broadband network. Out of the main basket too Tiscali, +6,3%, celebrate the preliminary agreement with Telecom for a strategic partnership concerning the development of the ultra-broadband market.
Flat bonds: 142 basis points lo spread between Italian and German ten-year bonds, with a BTP rate of 1,02%. In today's auction things went well. Demand was strong and rates were down for the 7 billion semi-annual BOTs. The simple weighted average yield is negative by 0,33%, five basis points less than in the previous auction (-0,28%). Market demand was close to 12 billion with a coverage ratio of 1,71. The amount of 7 billion was therefore fully allocated.
Going back to the stock, sells outweigh a Frankfurt -0,7%; Paris -0,64%; Madrid -0,65%; London -0,65%.
The indices in New York are of the opposite sign after the president of the Fed, Jerome Powell, inaugurating the Jackson Hole symposium, announced the expected change of course on inflation, opening up to a temporary overshoot of more than 2% to support the economy and occupation. Basically, the central bank will keep a free hand to act on rates even in the presence of a temporary recovery in inflation.
Among American stocks Boeing gains 3,5% after the European Union Aviation Safety Agency (EASA) announced plans to begin flight tests of the Boeing 737 MAX, a move it sees as a key step towards return to service of the aircraft. The multinational Abbott Laboratories it goes up 7,5% with an emergency authorization for the use in the United States of a test that allows you to know in 15 minutes if a person is positive for Covid-19 at a cost of 5 dollars.
However, the pandemic is once again frightening Europe. Paris is introducing the obligation to wear masks outdoors (over 5000 daily infections in France) and Germany is considering keeping stadiums empty until the end of 2020 and issuing fines for those who violate the obligation to wear a mask indoors closed. In Italy, for now, the numbers are lower, but the positives are growing at an impressive rate and, as the Gimbe foundation points out, the infected have doubled in a week.
The coronavirus is a health and economic threat. The USA, in the second quarter of the year, recorded an impressive contraction of the GDP, -31,7% compared to the same period last year. This is the second reading and it is better than the first and the analysts' catastrophic forecasts. Also in the United States, jobless claims fell by 98.000 last week but remained above the million mark, at 1,01 million.
In Italy there are over 2,5 billion hours of layoffs and solidarity funds authorized by INPS between April and July to deal with the Covid emergency. A timid sign of hope comes from the data on industry turnover and orders in June: +13,4% compared to May. On average in the second quarter, however, the overall index fell by 23,0% compared to the previous quarter, reports Istat. Orders also recorded a cyclical increase in June (+23,4%), while on average in the second quarter they decreased by 22,8% compared to the previous quarter.
Powell's move pushes the dollar. The euro changes around 1,179. Sales hit commodities: the Petroleum, Brent, is down more than 2% and trades at 44,6 dollars a barrel. L'gold spot was down 1,8% to $1918 an ounce.
